Midas.Investments is stepping into another chapter, which is called CeDeFi. This is our answer to the recent events with CeFi lending platforms. We think that the market needs transparent, scalable and efficient investment instruments with known yield sources and protection from black swans.
In August Midas introduces three new directional investment strategies. Fully automated, transparent on-chain, with high yield and easy-to-use interface. The strategies benefit from certain market movements and give you new opportunities to work with your portfolio based on your risk profile. The upcoming strategies are a major step toward our goal of de-risking the fixed yield products, such as BTC, ETH and stablecoins.
Our vision is to have low-risk transparent yield generation for fixed yield products while giving you the opportunity to generate higher APR through the array of investment strategies and balance your portfolio accordingly. In the report, Midas shares its transparent performance of the last two months in terms of yield and gives the sources of yields and risk frameworks that are used for each source. This is the new way Midas plans to adjust rates for fixed yield products: sharing sources of yield from our best performance in each market condition and updating on risk metrics.
On the 10th of August Midas.Investments plan to reduce the interest rate for the fixed yield products by taking the 2-month average yield performance of DeFi portfolio:
While this initial adjustment will result in a decline to APYs, Midas is improving the impact of the Midas Boost from 1.20x of an asset’s native APR to 1.25x. The Midas Boost is a self-sustaining feature that adds value to MIDAS’ liquidity while simultaneously benefitting its investors. With the introduction of high yield, transparent CeDeFi strategies, our main goal for our fixed yield products is to keep it in the lowest risk mode, especially in the current bear market.
Midas will publish monthly reports (within the first week of each month) recapping performance while providing continued transparency on our fixed yield products, portfolio structure, and risk frameworks while adapting yields to the market.
For a deeper dive into our DeFi and Algo portfolios, protocols, risk frameworks and an explanation on Midas Boost mechanics, we encourage all of our investors to read the report.